Joint Circular No. 57/2001/TTLT/BTC-BGTVT guiding the budget preparation, management, allocation, and settlement of state funds for economic waterway enterprises.

JOINT CIRCULAR

Guidelines for budget preparation, management, allocation

and settlement of accounts for economic service funds for inland waterway maintenance

Pursuant to Decree No. 87/CP dated December 19, 1996 of the Government detailing the decentralization of state budget management, preparation, implementation, and settlement of accounts, and Decree No. 51/1998/NĐ-CP dated July 18, 1998 of the Government amending and supplementing certain provisions of Decree No. 87/CP.

To strengthen the management, allocation of economic service funds for inland waterway maintenance in accordance with the provisions of the State Budget Law; the Ministry of Finance and the Ministry of Transport jointly issue guidelines for the preparation of budgets, management, allocation, and settlement of accounts for economic service funds for inland waterways guaranteed by the state budget as follows:

II- SUPPORT MEASURES FOR STATE-OWNED AGRICULTURAL FARMS AND FORESTRY COMPANIES IN THE FIELD OF SCIENCE AND TECHNOLOGY

1- Economic service funds for inland waterway maintenance provided by the state budget for regular management, routine maintenance, and non-routine maintenance of inland waterways shall be allocated, managed, and settled according to established standards, unit prices, and volumes of work approved by competent authorities.

2- Funds for the management, routine maintenance, and non-routine maintenance of central inland waterways (managed by the Vietnam Inland Waterways Administration) shall be guaranteed by the central budget.

Funds for the management, routine maintenance, and non-routine maintenance of local inland waterways shall be guaranteed by the local budget.

3- Annual economic service funds for inland waterways shall be settled according to current regulations.

II- SPECIFIC PROVISIONS

1- Contents of expenditures for inland waterway maintenance include:

1.1. Expenditures for routine maintenance:

Expenditures for the management and regular maintenance of inland waterways (according to the economic and technical standards for routine maintenance of inland waterways approved by competent authorities)

Expenditures for surveys and inspections of inland waterways

Expenditures for minor repairs, signals, signs, equipment, buildings, and riverbank improvements on managed inland waterway routes.

1.2. Expenditures for non-routine maintenance:

Expenditures for dredging channels

Expenditures for major repairs of embankments, riverbank improvements, and light structures

Expenditures for major repairs, renovations, and upgrades of station houses and equipment

Expenditures for purchasing equipment and communication systems, signals, and signs

Expenditures for removing and disposing of obstacles in the riverbed

For obstacles in the riverbed that can be attributed to specific agencies, units, or individuals based on handling records, those entities must bear all costs for removal and disposal.

Expenditures for emergency repairs and recovery from natural disasters or other causes to ensure navigation.

1.3. Other expenditures:

Expenditures for inland waterway traffic inspection activities         

Expenditures for training and professional development of workers managing sections and stations

Expenditures for traffic regulation, control, anti-drift measures, and continuous safety assurance for inland waterway navigation

Contingency expenditures for ensuring inland waterway navigation as decided by the Minister of Transport

2- Preparation of the budget for economic service funds for inland waterway maintenance:

The annual preparation of the budget for economic service funds for inland waterway maintenance shall be carried out in accordance with Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance "Guidelines for the Allocation, Preparation, Implementation, and Settlement of the State Budget." This circular provides additional guidance as follows:

2.1. For centrally-managed inland waterways:

Annually, based on the budget expenditure estimates assigned by the Ministry of Finance, the Ministry of Transport will notify the Vietnam Inland Waterways Administration. Based on the assigned plan, the Vietnam Inland Waterways Administration will allocate estimates to subordinate units (Inland Waterway Management Sections, Project Management Boards) and provincial Departments of Transport (for centrally-managed inland waterways delegated to local management - collectively referred to as delegated management inland waterways).

Based on the condition of the channel route, economic and technical standards, expenditure items specified in Point 1, Section II of this Circular, approved unit prices and expenditure standards, current financial expenditure regulations, and the allocated estimates from superiors, subordinate units under the Vietnam Inland Waterways Administration and provincial Departments of Transport (for delegated management inland waterways) will prepare detailed budgets for inland waterway maintenance expenses according to the expenditure items in the state budget classification, submit them to the Vietnam Inland Waterways Administration for review, and report to the Ministry of Transport for consolidation into the ministry's budget for submission to the Ministry of Finance for consolidation into the state budget for approval by the competent authority as prescribed.

2.2. For locally-managed inland waterways:

Provincial Departments of Transport (or Provincial Departments of Transportation and Communications) will base their budget expenditure estimates on allocations from competent authorities. Based on the condition of the channel route, economic and technical standards, expenditure items specified in Point 1, Section II of this Circular, approved unit prices and expenditure standards, and current financial expenditure regulations, they will prepare detailed budgets for inland waterway maintenance expenses according to the expenditure items in the state budget classification and submit them to the provincial Department of Finance and Price Control as required.

The budget expenditures as stipulated in Point 2, Section II above must be accompanied by detailed explanations. For non-routine maintenance expenditure items, they must be detailed according to each project linked to sections, channel routes, quantities, funding, and implementation timelines.

Due to the nature of inland waterway management and maintenance, the preparation of budgets and allocation of maintenance funds for inland waterways shall be carried out according to the expenditure items in the state budget classification as follows:

Section 117: "Regular maintenance expenses for fixed assets serving professional work and infrastructure facilities" Reflect management, regular repair costs of inland waterways.

Section 118: "Major repair expenses for fixed assets serving professional work and infrastructure facilities" Reflect non-regular repair costs of inland waterways.

Section 134: "Other expenses" Reflect other repair costs of inland waterways.

Section 145: "Cost of purchasing fixed assets" Reflect purchase costs of equipment, buoys, signaling devices, and other items serving management and repair of inland waterways.

3- Implement state budget estimates.

3.1. Allocation of allocated state budget estimate:

After receiving the state budget estimate for the year from the competent authority, based on the notification from the Ministry of Transport, the Vietnam Inland Waterway Administration allocates the budget estimate according to the content and sub-items specified in Section II above for implementing units (in detail by quarter and divided by month). The allocation of the budget estimate for implementing units must match between detailed allocations and total allocations. Additionally, for non-regular repair expenses, they must be detailed according to each project linked with channel routes, volume, funding, implementation time, and sent to the Ministry of Finance and State Treasury where transactions take place; including:

Funding for inland waterway repairs carried out by Inland Waterway Management Sections.

Funding for inland waterway repairs carried out by Inland Waterway Project Management Boards.

Funding for inland waterway repairs delegated to Provincial Departments of Transport under the Central Government to implement.

Provincial Departments of Transport under the Central Government, based on the state budget estimate for expenditures received from the competent authority, allocate the budget estimate according to the content and sub-items specified in Section II above for implementing units (in detail by quarter and divided by month). The allocation of the budget estimate for implementing units must match between detailed allocations and total allocations. Additionally, for non-regular repair expenses, they must be detailed according to each project linked with channel routes, volume, funding, implementation time, and sent to Provincial Finance and Price Control Departments and State Treasuries where transactions take place as a basis for monitoring, managing, controlling expenditures, and payment.

Based on the repair expenditure budget estimate received from the competent authority, Inland Waterway Management Sections and Inland Waterway Project Management Boards organize implementation according to assigned tasks; sign contracts or place orders with enterprises. Provincial Departments of Transport under the Central Government implement plans, sign contracts, or place orders with enterprises and public service units under local management (including the portion of central government budget funds delegated for management of central inland waterways) as a basis for inspection, supervision, acceptance, and payment of inland waterway repair works.

3.2. Issuance and payment of inland waterway repair funding

For central inland waterways: Quarterly, based on the central government's budget capacity and the repair expenditure budget estimate prepared by the Vietnam Inland Waterway Administration, the Ministry of Finance issues directly to the Vietnam Inland Waterway Administration by budget limit; the Vietnam Inland Waterway Administration distributes the budget limit to Inland Waterway Management Sections and Inland Waterway Project Management Boards for payment of completed inland waterway repair works.

For central inland waterways delegated to local management: Based on the detailed repair expenditure budget estimate within the period prepared by the Vietnam Inland Waterway Administration according to the state budget item list, the Ministry of Finance issues to local Finance and Price Control Departments by budget limit; simultaneously notifying the Ministry of Transport (Vietnam Inland Waterway Administration) and delegating local Finance and Price Control Departments to issue to Provincial Departments of Transport for payment of completed inland waterway repair works.

For inland waterways managed locally: Quarterly, based on the local government's budget capacity and the detailed repair expenditure budget estimate within the period prepared by Provincial Departments of Transport according to the state budget item list, local Finance and Price Control Departments issue to Provincial Departments of Transport by budget limit for payment of completed inland waterway repair works.

Basis for issuance and payment of inland waterway repair projects:

Within the approved project list and budget estimate.

Having inland waterway repair funding issued by the finance agency.

Tender result report (or direct award report) as per current regulations.

(For routine maintenance and emergency repairs due to typhoons and floods to ensure traffic, as decided by transportation authorities).

Investment reports and investment decisions for major inland waterway repair works.

Economic contracts or orders between Inland Waterway Management Sections, Inland Waterway Project Management Boards, or Provincial Departments of Transport and the executing repair units.

Completion certificate for quantity, quality, and price list of the project.

Payment authorization signed by the head of the unit that contracted or ordered, along with valid documentation.

The State Treasury at the transaction location checks and performs the function of expenditure control as stipulated in Circular No. 40/1998/TT-BTC dated March 31, 1998, of the Ministry of Finance on "Guidelines for the Management, Issuance, and Settlement of State Budget Revenue and Expenditure through the State Treasury." In cases where repair work has not been completed, the maximum advance payment shall not exceed 80% of the value of the signed contract for each repair work.

4- Reporting and settlement of funding.

4.1. Final report and settlement:

At the end of each quarter and year, Inland Waterway Management Sections and Inland Waterway Project Management Boards prepare final reports on inland waterway repair funding to be submitted to the Vietnam Inland Waterway Administration for consolidation and reporting to the Ministry of Transport and the Ministry of Finance in accordance with the prescribed forms and deadlines set forth in Decision No. 999 TC/QD/CĐKT dated November 2, 1996, of the Ministry of Finance regarding the issuance of the system of accounting regulations for administrative and public institutions.

The Department of Transport (Waterway Transport) of provinces and centrally governed cities shall be responsible for preparing the quarterly and annual financial settlement reports on local funds for river road repairs and delegated funds to be submitted to the Department of Finance and Prices in accordance with the prescribed forms and deadlines, and concurrently send the portion of delegated funds to the Ministry of Transport (Vietnam Waterway Administration).

4.2. Examination and approval of financial settlement reports:

The examination and approval of annual financial settlements for waterway public services shall be carried out in accordance with Circular No. 21/2000/TT-BTC dated March 16, 2000, issued by the Ministry of Finance, guiding the examination and notification of annual financial settlements for administrative and public service units, specifically as follows:

The Vietnam Waterway Administration shall be responsible for examining and approving the financial settlements of River Road Management Sections and River Waterway Project Management Boards. The Ministry of Transport shall be responsible for examining and approving the financial settlements of the Vietnam Waterway Administration; the Ministry of Finance shall examine and approve the consolidated annual financial settlements of the Ministry of Transport.

The Department of Finance and Prices shall examine and approve the consolidated annual financial settlements of the Department of Transport (Waterway Transport) of provinces and centrally governed cities (including local funds and delegated funds). The Ministry of Finance shall coordinate with the Ministry of Transport (Vietnam Waterway Administration) to audit and review the financial settlements of provincial and centrally governed city Departments of Finance and Prices regarding delegated funds in accordance with current regulations.

5- Inspection work:

To ensure that the economic public service funds for river road repairs are used for their intended purposes and effectively, the Ministry of Transport, the Vietnam Waterway Administration, and the Department of Transport (Waterway Transport) of provinces and cities shall be responsible for coordinating with the same-level financial authorities to regularly and randomly inspect the management, use, and settlement of economic public service funds for river road repairs at subordinate units.

Expenditures exceeding the budgeted amount, unplanned expenditures, and expenditures not in accordance with regulations must all be accounted for and recovered to the state treasury; at the same time, the person who orders incorrect expenditures shall compensate the public fund and bear legal responsibility.

III- IMPLEMENTATION PROVISIONS

This Circular takes effect 15 days from the date of signature and replaces Circular No. 25/TT-LB dated September 9, 1986, jointly issued by the Ministry of Finance and the Ministry of Transport: "Guidelines for the Management, Allocation, Audit, and Settlement of Management Funds and River Repair Costs."

Any difficulties encountered during implementation should be reported to the relevant ministries for appropriate amendments.